Franchising in Greece: choosing your first franchisee

Turning an existing business into a franchise network does not begin with accepting the first applicant who has the capital. Your first franchisee will put your ability to work with an independent business owner to the test. You therefore need a selection process that assesses not just financial capacity, but also day-to-day involvement, judgement and willingness to follow shared standards.

1. Define the partner your business needs

Before inviting applications, describe the franchisee’s actual role. Will they work in the outlet every day? Will they manage staff? Will they develop local partnerships? Or can the outlet operate with a manager and occasional visits from the owner?

The answer should reflect your business’s needs, not a desire to attract more applicants. If the owner’s personal involvement is essential, do not present the opportunity as a passive investment.

Create a short assessment form covering four areas:

• Financial resilience: the ability to fund the investment, provide working capital and meet personal living costs.
• Management ability: organising work, managing people and solving problems.
• Fit with the model: acceptance of training, quality checks and shared procedures.
• Local involvement: knowledge of the area and the ability to maintain a meaningful presence.

Distinguish essential requirements from skills that can be developed through training. A lack of product knowledge can be addressed; a persistent unwillingness to cooperate usually cannot.

2. Set up a staged assessment process

Avoid informal meetings that lead straight into negotiations. A consistent process helps you compare candidates on the same basis and limits decisions driven by enthusiasm alone.

Start with a short application covering professional experience, preferred location, time available and an indication of funding capacity. In the initial discussion, explain the demands of the role and assess whether expectations align. Do not request extensive financial or family information at the outset.

Next, conduct a structured interview using the same core questions for everyone. Ask for specific examples: ‘How did you handle an employee leaving?’ or ‘When have you had to follow a procedure you initially disagreed with?’ Actual behaviour is more useful than broad statements of ambition.

Arrange a separate meeting with the person who will be responsible for supporting the franchisee. Record your assessments with supporting evidence and specify who is responsible for the final decision. The aim is to choose the most suitable partner, not the most persuasive interviewee.

3. Check resources and test the working relationship

At a later stage, request proportionate evidence of available funding and handle the documents securely. Distinguish the candidate’s own funds from funding they merely expect to receive. A loan application is not the same as approval, and total assets are not the same as readily available cash.

Work through an adverse operating scenario together, without presenting hypothetical results as forecasts. What happens if opening is delayed or takings fall below the assumptions? Who will meet the financial commitments, and how long could the business keep operating?

Also arrange an observation visit to the existing business and discuss real situations. You could ask the candidate to explain how they would handle a customer complaint or staff shortage. The visit must not become undeclared work or unpaid shift cover.

Check professional references after giving prior notice and establishing an appropriate lawful basis. Look for consistency, reliability and evidence of how the candidate works with others, not irrelevant personal information.

4. Follow Greek rules before entering into an agreement

Greece has no specific law comprehensively regulating franchising, no generally mandatory state register of franchisors and no standard pre-contractual disclosure pack prescribed by law. This does not mean that selecting a partner is free of legal obligations.

Articles 197–198 of the Greek Civil Code require good faith in negotiations and provide for liability for damage caused through fault. Avoid unsupported promises of returns, withholding material information and pressure to sign immediately. Allow sufficient time for independent legal and financial review.

The Code of Ethics of the Greek Franchise Association is a self-regulatory framework, not state law. Adherence to it and the Association’s membership criteria should not be presented as general requirements for lawfully developing a franchise network.

Candidates’ personal data is subject to the General Data Protection Regulation and Greek Law 4624/2019. Define the purpose of collection, the lawful basis, access restrictions and the retention period. Consent is not automatically the appropriate basis for every check.

5. Decide without pressure to expand quickly

Conclude the assessment with a written decision: acceptance, a decision deferred pending specific information, or rejection. If funding or availability remains unresolved, do not treat these as details to be settled after signing. Make clear which issues must be resolved before proceeding.

Practical takeaway: before seeking your first franchisee, prepare a role description, a standard assessment form and clear stages for carrying out checks. A well-founded rejection is better than a partnership that begins with incompatible expectations.